FAQs About Becoming an Insurance Agent in Singapore

So, you’re thinking about becoming an insurance agent, financial advisor, wealth planner, or retirement specialist. While the titles may vary, at their core, they all revolve around helping clients manage their finances, plan for the future, and protect their wealth.

If you’re exploring this career path, you’ve likely asked around, done some Googling, and maybe even fired up ChatGPT to get a better understanding of the industry. You might be wondering about the earning potential, work-life balance, qualifications needed, or what it really takes to succeed.

Having been in the recruitment space for financial advisory firms for the past few years, we’ve had countless conversations with aspiring advisors just like you. Many have similar concerns and questions before taking the leap.

To help you get a clearer picture, we’ve put together a list of the most common questions we receive—along with insights to help you decide if this career is the right fit for you. Let’s dive in:

What Are the Eligibility Criteria to Become an Insurance Agent in Singapore?

To become an insurance agent in Singapore, individuals must meet specific eligibility criteria set by regulatory bodies. The basic requirements include:

• Age Requirement: The applicant must be at least 21 years old.
• Educational Qualifications: A minimum of 4 GCE ‘O’ Level passes, including English, is required. Alternatively, a GCE ‘A’ Level certificate with three H2 passes and two H1 passes, or equivalent qualifications, is acceptable.
• Residency Status: The applicant must be a Singaporean or a Singapore Permanent Resident.

These criteria ensure that individuals entering the industry have a foundational education and legal standing to operate in Singapore.

What Examinations Do I Need to Pass to Become an Insurance Agent?

To get started as an insurance agent in Singapore, you’ll need to pass a few specific exams under the Singapore Capital Markets and Financial Advisory Services (CMFAS) framework. These exams are essential to ensure you have the necessary knowledge of regulations, policies, and principles in the industry. Here are some of the key exams you’ll need to pass:

• RES 5 (RES5) – Rules & Regulations for Financial Advisory: This exam covers the regulations that govern financial advisory services in Singapore, ensuring you understand the legal and ethical requirements.
• Module 9 (M9) – Life Insurance and Investment-Linked Policies: This one dives into the details of life insurance and investment-linked policies, which are central to many financial plans.
• Module 9A (M9A) – Life Insurance and Investment-Linked Policies II: An advanced module focusing on more complex aspects of life insurance and investment-linked policies.
• Health Insurance Module (HI) – This module covers health insurance policies and gives you a solid grounding in the principles behind various health insurance products.

Once you’ve passed these exams, you’ll be ready to advise on life and health insurance. But, if you want to branch out and sell other products, you’ll need to pass a few more exams.

For example, Module 6 (M6) is key if you’re looking to sell collective investment schemes like unit trusts. This exam covers the rules and regulations for investment products, and it’s a must if you want to offer those kinds of financial solutions. If general insurance is more your thing, there are two certifications you can go for under the CMFAS framework: Personal General Insurance Certification and Commercial General Insurance Certification. These certifications are perfect for agents looking to offer a wide range of general insurance options.

How Do I Choose an Insurance Company to Represent?

When it comes to choosing the right insurance company, there are a few key questions you should consider:

Are you a go-getter looking to climb the ranks, or maybe you’re just in it for a side income? Are you someone who’s super driven and wants mentors to constantly push you to do better? Or maybe you’re looking for an agency with quality leads and solid partnerships?

We believe picking the right company makes a huge difference. You probably want to work somewhere where your colleagues are around your age and share the same goals. When selecting an insurance company to work with, consider the following factors:

• Agency Reputation: Research the company’s market position, reviews, and financial stability.
• Independent or Tied: If you value flexibility and want to offer your clients a broad range of options, independent advisory might be the way to go. If you prefer a more focused approach with deep knowledge of one company’s products, tied advisory could be a better fit.
• Product Offerings: Ensure the company has the range of products that align with your target clientele.
• Commission Structure: Compare commission rates, bonuses, and incentives.
• Training and Support: Check if the company provides comprehensive training and ongoing professional development.

When picking the right insurance agency, remember that finding the right fit can make all the difference in your long-term success and satisfaction. Take the time to consider all these factors to make sure the company matches your goals, work style, and values. That’s where InsuranceJobs comes in. We’ve been working with some of the top agencies in Singapore for years to help you get the best shot at success in the industry. Reach out to us today for a no-obligation chat!

How Long Does It Take to Become an Insurance Agent in Singapore?

After finding the right agency, becoming an insurance agent in Singapore typically takes around 2 to 6 months. Here’s how it usually goes:

• Exam Preparation (1-6 months): You’ll need to study and attend classes for exams like RE5, M9, M9A, and HI. If you’re good with studying, it could take just 1-2 months, but if exams aren’t your thing, don’t worry— you’ll get your results right after the test and can retake any exams you didn’t pass fairly quickly.
• Post-Exam (1-2 weeks): After passing the exams, you’ll submit your documents and meet with the agency for onboarding and background checks.
• Training & Mentorship (1 month): You’ll then undergo product training (which could range from a few days to a week, possibly over Zoom) and mentorship before you start making sales.

All in all, it’ll take anywhere from 2 to 6 months to be ready to start selling insurance.

How Demanding Is the Job of an Insurance Agent?

How demanding the job of an insurance agent is really depends on your personality and how much effort you’re willing to put in. If you’re someone who enjoys meeting new people and striking up conversations, you might find it easier than others. Gone are the days of piles of paperwork to process policies—most agencies have gone digital now, so you can get cases approved without even stepping into an office.

However, like any job, success as an insurance agent comes down to the effort you put in. If you’re willing to dedicate the same amount of time and energy as you would in a regular full-time job, and if you find the right agency, your chances of succeeding are pretty high. The biggest challenges new agents face are either not putting in enough hours or getting stuck with an agency that doesn’t provide the support, leads, or guidance they need. Without proper mentorship and direction, many agents find themselves overwhelmed and end up leaving the industry. Here are a few things to keep in mind:

• Client Acquisition: You’ll need to be proactive with prospecting and lead generation.
• Sales Targets: Expect to have quotas to hit.
• Long Working Hours: Evening and weekend appointments are pretty common.
• Regulatory Compliance: Keeping up with industry laws and regulations is a must.

How Much Can I Earn as an Insurance Agent

Being an insurance agent in Singapore is often misunderstood as a risky, low-income career requiring sales experience. In reality, insurance agents earn an average of SGD 57,228 annually, with top performers earning over SGD 80,000. Entry-level agents make SGD 3,000–5,000 per month taking into account the package you sign and the added incentive bonuses for new agents, and commissions increase income.

Many successful agents come from non-sales backgrounds, with strong communication and self-drive. Income is commission-based, but high performers earn substantial bonuses.

Ultimately, the career is about building relationships and offering financial protection, with strong earning potential and long-term rewards.

What Are My Primary Duties as an Insurance Agent?

What are your main duties as an insurance agent? Well, it largely depends on the financial advisory you choose to work with. Some focus on retirement planning, while others have hospital tie-ups for maternity and baby insurance, or specialize in corporate clients. Some agencies focus mainly on generating leads through referrals and roadshows. The type of agency you join will influence your day-to-day tasks, especially when it comes to lead generation, which is a big part of the role of newer agents. An insurance agent’s primary duties include:

• Identifying clients’ insurance needs and offering suitable policies.
• Explaining policy details, terms, and benefits.
• Assisting clients with claims and policy renewals.
• Keeping up with industry trends and changes.
• Maintaining proper records of client transactions.

But with the right mindset, support, and a solid agency behind you, the road to success as an insurance agent can be both rewarding and fulfilling.

What Products will I be Offering as an Insurance Agent?

As an insurance agent in Singapore, you would typically offer a wide range of insurance products to meet the diverse needs of clients. These products cater to various life stages and financial goals, allowing you to tailor solutions for each client’s unique situation.

Life insurance is a key offering, providing financial security to policyholders and their families. Term life insurance offers coverage for a specific period, paying out a lump sum in the event of death or terminal illness. Whole life insurance provides lifelong protection while accumulating cash value over time. Endowment policies blend savings with protection, ensuring a lump sum payout after a set term or upon the insured’s passing. Investment-linked policies (ILPs) integrate life insurance with investment opportunities, allowing premiums to be allocated to different investment funds.

Health insurance is another crucial component. MediShield Life is a basic health insurance plan that covers hospital bills and outpatient treatments at subsidized rates. Integrated Shield Plans (IPs) offer additional coverage, allowing access to private hospitals and higher-class wards. Critical illness insurance provides a lump sum payout upon the diagnosis of serious conditions such as cancer or heart disease, while disability income insurance replaces a portion of lost income if the insured is unable to work due to disability.

Personal accident insurance covers medical expenses, hospital income, and provides lump sum payouts for accidental injuries, disability, or death. Long-term care insurance, such as CareShield Life, ensures financial support for those facing severe disabilities, with supplementary plans available to enhance coverage.

For clients focused on wealth accumulation and legacy planning, savings or investment-focused policies such as endowments and ILPs provide financial growth opportunities. Estate planning solutions help clients leave a larger financial legacy for their beneficiaries.

General insurance is also a key part of an agent’s portfolio, covering motor, travel, home, and business insurance, depending on the agency’s offerings.

By understanding these products and their benefits, insurance agents can help clients secure financial stability, protect their health, and build a lasting legacy.

How Can I Prepare for a Successful Career as an Insurance Agent?

To prepare for a successful career in insurance, start by defining what you want to achieve. Are you aiming for prestigious recognitions like MDRT, COT, or TOT? Do you want to build your own team of agents or focus on a specific client demographic, like high-net-worth individuals or everyday people? These goals will shape your approach and help you stay focused.

It’s also important to specialisze in a niche that aligns with your target market. Constant learning is key—stay updated with industry trends and new products to offer the best solutions. Building strong networks and improving your sales skills are essential to success, as well as finding mentors who can guide you along the way. With clear goals, dedication, and the right mindset, you’ll be on track for a rewarding career in insurance. To prepare for a successful career in insurance, consider the following steps:

• Complete Required Education and Exams: Obtain the necessary certifications and qualifications.
• Gain Sales Experience: Experience in sales can be an advantage.
• Develop a Strong Network: Building relationships is crucial for client acquisition.
• Research Insurance Products: Understand different policies and their benefits.
• Enhance Communication Skills: Strong communication skills can help in client interactions.
• Attend Training Programs: Many insurance companies offer specialised training for new agents.

By taking these steps, you’ll be on the path to a rewarding and successful career in the insurance industry.

If you’re feeling unsure about whether this career is right for you, we’ve covered a lot of ground to help clarify the process. From eligibility criteria to what exams you need to pass, how long it takes to become an agent, and what to expect in terms of daily duties, we hope you’ve gained a clearer picture of what’s ahead.

Remember, choosing the right agency is key to ensuring long-term success. Whether you’re looking to specialize in a certain area, need solid mentorship, or want an agency that offers great leads and training, there are plenty of opportunities to thrive in this industry. At InsuranceJobs, we’ve been working with top agencies in Singapore for years, helping people like you get a great start in the insurance world.

If you’re ready to take the plunge or have any more questions, don’t hesitate to reach out. You can fill out our contact form or simply WhatsApp us today for a no-obligation chat. Let’s see how we can help you kickstart your career in insurance!